Wipro lowers revenue guidance for Q1

The outlook is less than $2,033-2,073 million range, Wipro projected for the fourth quarter of fiscal 2017-18 on January 19 and $2,062 million it reported.The company, however, said it would revise the outlook for the quarter after divesting its hosted data centre services business to the US-based Ensono for $405 million (Rs 2,633 crore) during the quarter.

Bengaluru: Global software major Wipro on Wednesday projected lower sequential revenue for the first quarter of 2018-19 from its flagship IT services business in dollar terms. "We expect revenue from our IT services to be in the range of $2,015-2,065 million for the first quarter ending June 30," said the city-based IT firm in a regulatory filing on the BSE.

The outlook is less than $2,033-2,073 million range it projected for the fourth quarter of fiscal 2017-18 on January 19 and $2,062 million it reported.The company, however, said it would revise the outlook for the quarter after divesting its hosted data centre services business to the US-based Ensono for $405 million (Rs 2,633 crore) during the quarter.

"As we expect to complete the transaction by June 30, we have not considered the impact of the divestment on the revenue for the quarter," said the company in the filing. Wipro on March 14 announced selling its eight data centres along with their 900 techies to the US-based hybrid IT services provider. As part of the deal, Wipro will also invest $55 million (Rs 358 crore) in Ensono's combined entity.

"The outlook is also based on the exchange rate of US$ at Rs 65.12 on March 31," added the filing.

Wipro on Wednesday reported dented profit, which was slightly lower than the expectations, thus raising concerns for the company. According to a report on The Economic Times, the IT company posted a drastic fall of 20.5 per cent on a Y-o-Y basis for the January-March quarter at Rs 1,800.80 crore as compared to Rs 2,267 crore for the same period last year. It should, however, be noted that the numbers were below the figure of Rs 2,140 crore estimated by an ET NOW poll.

According to the company filing, the net income of the IT major was Rs 14,304.6 crore as compared to Rs 15,045. 5 crore in the corresponding period a year ago.